We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AGCO Corp (AGCO) Up 27% So Far This Year: What's Driving It?
Read MoreHide Full Article
AGCO Corporation’s (AGCO - Free Report) shares have gained 27.2% so far this year, outperforming the industry’s growth of 26.9%. This price appreciation can be attributed to higher agricultural commodity prices, which is fueling demand for farm equipment. Moreover, focus on investment in precision agriculture are contributing to this price rally.
Image Source: Zacks Investment Research
Let’s delve deeper and analyze the factors driving the stock.
Driving Factors
Global commodity prices have regained footing after declining significantly in the earlier part of 2020 amid the pandemic. This, in turn, is driving farm income and encouraging farmers to invest more in agricultural equipment.
AGCO anticipates sales and earnings growth in the current year to gain on improving industry conditions across all major markets. The company projects net sales for the ongoing year to lie between $10.6 billion and $10.8 billion, up from the prior forecast of $10.2 billion to $10.4 billion. The upbeat guidance suggests improved sales volumes, pricing and positive impacts of foreign-currency translation. Considering these, AGCO estimates adjusted earnings per share for the current year in the range of $8.40 to $8.60, up from the prior projection of $7.00 to $7.25.
The company anticipates industry sales across North and South America, and the European Union to trend higher this year on rising commodity prices and improved farmer sentiment. Further, the need to replace an ageing fleet with technologically-advanced equipment will drive demand. Moreover, AGCO continues to gain from increased grain consumption on economic recovery and higher export demand.
The company continues to invest in products, premium technology and smart farming solutions to improve distribution and enhance digital capabilities, in order to boost margins and strengthen product offerings. These improvements will aid AGCO’s investments in precision agriculture and digital initiatives. The company has also been making investments to upgrade system capabilities, expand product lines and improve factory productivity.
Positive Growth Projection
The company’s earnings estimate for the current year is pegged at $8.67, at present, indicating year-over-year growth of 54.6%.
A few other top-ranked stocks in the Industrial Products sector are Tennant Company (TNC - Free Report) , Encore Wire Corp. (WIRE - Free Report) and Arconic Corp. . All of these stocks sport a Zacks Rank #1, at present.
Tennant has an anticipated earnings growth rate of 49.5% for 2021. The company’s shares have gained around 18%, year to date.
Encore Wire has an estimated earnings growth rate of 49.5% for the ongoing year. Year to date, the company’s shares have rallied nearly 36%.
Arconic has a projected earnings growth rate of 447% for the current year. The stock has appreciated around 21%, so far this year.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Image: Bigstock
AGCO Corp (AGCO) Up 27% So Far This Year: What's Driving It?
AGCO Corporation’s (AGCO - Free Report) shares have gained 27.2% so far this year, outperforming the industry’s growth of 26.9%. This price appreciation can be attributed to higher agricultural commodity prices, which is fueling demand for farm equipment. Moreover, focus on investment in precision agriculture are contributing to this price rally.
Let’s delve deeper and analyze the factors driving the stock.
Driving Factors
Global commodity prices have regained footing after declining significantly in the earlier part of 2020 amid the pandemic. This, in turn, is driving farm income and encouraging farmers to invest more in agricultural equipment.
AGCO anticipates sales and earnings growth in the current year to gain on improving industry conditions across all major markets. The company projects net sales for the ongoing year to lie between $10.6 billion and $10.8 billion, up from the prior forecast of $10.2 billion to $10.4 billion. The upbeat guidance suggests improved sales volumes, pricing and positive impacts of foreign-currency translation. Considering these, AGCO estimates adjusted earnings per share for the current year in the range of $8.40 to $8.60, up from the prior projection of $7.00 to $7.25.
The company anticipates industry sales across North and South America, and the European Union to trend higher this year on rising commodity prices and improved farmer sentiment. Further, the need to replace an ageing fleet with technologically-advanced equipment will drive demand. Moreover, AGCO continues to gain from increased grain consumption on economic recovery and higher export demand.
The company continues to invest in products, premium technology and smart farming solutions to improve distribution and enhance digital capabilities, in order to boost margins and strengthen product offerings. These improvements will aid AGCO’s investments in precision agriculture and digital initiatives. The company has also been making investments to upgrade system capabilities, expand product lines and improve factory productivity.
Positive Growth Projection
The company’s earnings estimate for the current year is pegged at $8.67, at present, indicating year-over-year growth of 54.6%.
Zacks Rank & Other Stocks to Consider
AGCO Corporation currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few other top-ranked stocks in the Industrial Products sector are Tennant Company (TNC - Free Report) , Encore Wire Corp. (WIRE - Free Report) and Arconic Corp. . All of these stocks sport a Zacks Rank #1, at present.
Tennant has an anticipated earnings growth rate of 49.5% for 2021. The company’s shares have gained around 18%, year to date.
Encore Wire has an estimated earnings growth rate of 49.5% for the ongoing year. Year to date, the company’s shares have rallied nearly 36%.
Arconic has a projected earnings growth rate of 447% for the current year. The stock has appreciated around 21%, so far this year.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>